June 1, 2004
ByJoseph J. DioGuardi
Ossining, New York

When Social Security—more precisely the Old Age and Survivors Insurance Program (OASI)—was originally enacted by Congress in 1935, the payroll tax and the benefit program were separated because of doubt as to whether the Constitution allowed Congress to tax some people to benefit others. When this was tested in 1937 in the Supreme Court (Helvering v. Davis), the government lawyer understood and successfully argued that OASI was not an insurance program requiring a trust fund and separate accounting, but was in reality a welfare program. Yet, in spite of the legal outcome, an early Social Security information booklet advised workers that their payroll deductions were strictly accounted for and kept separate from the general funds of the U.S. Treasury,” which was clearly a gross misrepresentation of the legal and economic reality then and now. Read More

January 7, 2004
By Joseph Rebello, Of DOW JONES NEWSWIRES
Yahoo! News

WASHINGTON (Dow Jones)–Economists at the International Monetary Fund on Wednesday expressed alarm at growing U.S. budget deficits, saying continued deficits could hurt the global economy by roiling currency markets and driving up interest rates.

In a report on U.S. budget outlook, IMF researchers described the state of government finances as “perilous” in the long run and urged Congress and the White House to take steps to quickly rein in the deficits. Although federal tax cuts and spending increases since 2001 bolstered the global economy in the short run, the report said “large U.S. fiscal deficits also pose significant risks for the rest of the world.” Read More

October 10, 2003
By Howell E. Jackson,
Associate Dean, Harvard Law School

“In addition to misrepresenting the magnitude of the Social Security system’s looming financial crisis, the current accounting system for Social Security distorts public debate over Social Security reform proposals and confuses the relationship between Social Security and the rest of the federal budget. Accrual accounting, in contrast, would provide a clearer picture of the true state of the Social Security’s current financial shortfall and the extent to whch the system’s burden on future generations is increasing each year. Accrual accounting would also create political incentives for our leaders to address Social Security’s difficulties in a timely manner, and enhance the quality of public debate over the relative merits of competing reform proposals.”
Click here to Download the pdf file to read more

Peter Peterson Interview on NOW with Bill Moyers

September 26, 2003

BILL MOYERS: Those of you who are faithful to NOW will recognize this clock, the deficit clock, just a few blocks from our office here in New York silently measuring how fast the United States government is spending money it doesn’t have. Standing there you get the impression you’re looking at the digital Doomsday deficit clock and you have the urge to talk to Peter Peterson. Read More

David Broder: “Fiscal Doomsday in the Offing”

October 5, 2003

Maybe all the others are wrong. Maybe those in the Bush administration who claim we can grow our way out of these big budget deficits if we just keep cutting taxes to stimulate the economy know something no one else grasps. But if I had to bet my grandchildren’s future prosperity on anyone, I would not bet that way…
Click here to Download the pdf file to read more

Click Here for reference url

Government Just Can’t Contain Itself

September 30, 2003
by Chris Edwards
CATO Institute

In 1985, government officials claimed that Boston’s “Big Dig” highway project would cost $2.6 billion and be completed by 1998. The cost ballooned to $14.6 billion and the project is still not finished…Read More